Threat of Wage Garnishment what now

[Mark80]

I just got off the phone with a creditor and I told them as instructed that I will be filing bankruptcy and will provide them with my attorneys information as soon as I can pay the retainer fee. The guy on the phone got pissed at this point and said Wells Fargo would now sue me for not paying and they are contacting their attorney now and will get wage garnishment activated.

How long will this take to go into effect? I cannot file until my child is born, he is due mid next month! I don't have the cash to pay the retainer, let alone the full amount to file but I guess I will have to skip out on my housepayment just to get it going? Unless you guys think I will have more time then he made it out?

Thanks

[b_girl]

You have more time. Don't skip the housepayment if you're planning on keeping your home...you have to be current on it in order to file.

[PoorGrammyinBK7]

They cannot garnish wages until after they get a judgment and it is recorded (and then only if garnishment is allowed in your state). They have not even sued you yet and it's likely just a threat to scare you into paying. It also depends on whether its a small claim or not and how busy the court's schedule is. You have time - not sure how much. I would think at least a couple of months, maybe more - even if they filed suit right away. You have to be given time to answer the suit. If you don't, they get a default judgment. But I am not a lawyer, so maybe someone with more knowledge than myself will answer you soon and more specifically to your state.

[cupcake]

Wells Fargo would need to file the lawsuit, get you served, get a judgment, wait the statutory entry period and then request a garnishment writ. All of that is going to take some time. Also, the time line would change depending on where the lawsuit is filed (small claims court versus circuit court). If it's small claims (for a smaller debt) you will not have as much time but in circuit court (larger debts) you could really stretch it out by filing an answer and submitting some discovery to Wells Fargo.

[WoodSprite]

Wells Fargo would need to file the lawsuit, get you served, get a judgment, wait the statutory entry period and then request a garnishment writ. All of that is going to take some time. Also, the time line would change depending on where the lawsuit is filed (small claims court versus circuit court). If it's small claims (for a smaller debt) you will not have as much time but in circuit court (larger debts) you could really stretch it out by filing an answer and submitting some discovery to Wells Fargo.

It does sound like you'll have time...remember how long bureaucracy takes to do it's thing. Just this once, this should work in your favor.

Do you know what Cupcake's talking about in the last sentence, here? My attorney had me respond to a threatening letter from the Slamowitz gang, sending a certified letter asking them to verify the debt. Lots of free form letters to this effect are available online. They have to drop what they're doing and respond to this, if asked, and it's enough of a monkey wrench to buy you an additional few weeks at least. It's evidently done all the time, and it's perfectly above board.

How awful to be thinking about this stuff when you should be thinking about baby! Try not to worry...you're clearing the way for a fresh start once he gets here.

[JRScott]

Even if they started today it is unlikely you'd be served before early October in my opinion. Many of these creditors use illegal threats and such to try to goad you into paying. Pay your house payment. Then retain your lawyer soon as you can

[Lajazz947]

I agree.

Amex sold one of my debts to James West, a Texas attorney who called me incessantly. It was about a $7500 debt.

Then the calls stopped. They apparently sold it to NCO who has called me a bunch of times. James West is now out of the picture.

My other Amex card was sold to a Swicker and associates and they now have the office manager calling me. Lets see how that goes. It's for about the same amount. I was making token payments a s a goodwill gesture and it was a waste of money. That's why I feel nothing about about BK-ing them. They would not work with me.

I am not an attorney but I think that they first have to sue you, serve you, you have time to respond, if no response in 30 days they have to get a judgement, THEN they have to try to garnish and attach.

I think it was awful that Wells Fargo told that to you and they achieved the result.........they got you worried enough to maybe make a payment.

[Mark80]

[AngelinaCat]

If you are going to pay your retainer tomorrow, just don't answer the phone until afterward. Then tape one of the attorney's cards to all of your phones so that you have the contact info handy. Give that to the caller and that should be that.

And yes, you will be safely filed before these people can draw up their paperwork and serve it. Typically, once you are subpoened, you will have 20 days to respond. Then when you appear in court--don't NOT appear if it gets that far--then your case will be sent to mediation, where you and the other party are supposed to work out payment plans. Those mediation dates are usually--in our area at least--once a month. By then you should be filed. You are looking at probably 3 months.

If you HAVE to appear in court, do so. Otherwise if you don't, the judge will automatically impose a default judgment on you, which speeds up to process for the CC companies. You appearing and being assigned a date for Mediation lengthens the timeline.

Prayers are going for the health of your wife and baby.

[Mark80]

Thanks for making me feel more at ease Angelina! I should be able to file before the end of September, wife is to be induced the 19th if our new addition hasn't arrived already! I'm somewhat worried about my housepayment though, as I am sure I will still be 15 days or so late by the time I file.

[BKParalegal]

You do not have to be current on your mortgage at the time of filing,b_girl was/is mistaken.

Good Luck

[keepmine]

While you don't have to be current on the mortgage to file, as a pratical matter you need to be able to get current in a hurry once you file. It won't take long for your lender to file for relief from stay.
I'd not let a creditor rush me. Get caught up on your mortgage. You'll have months before you get sued.
If these calls strees you, don't tak to them. If you have caller ID, let 'em go to VM.

[Mark80]

I read somewhere that if you avoid calls the creditors can call your neighbors? Is this true! Talk about an invasion of privacy!

My mortgage isnt way behind, its like I said about 15 days late and will be more on track by the end of september. But I agree I need to be 100% caught up on everything before I file so I will try to hold out as long as I can. I am going to go ahead today and pay the retainer fee, just so my paper work can get sorted out and I can see where I am at. I guess that also means I can start directing calls to my Attorney, even without a case number? Atleast avoiding a drawn out argument on my end?

Once everything is filed I was told you can pull the trigger very fast, so once I get sued I'm guessing I can file and have it stopped before it can go into effect?

I'm taking a deep breath today and trying to stay positive. It sucks to have all this raining on me with my baby coming any day.

One situation that I am confused on what to do about, I pay my parents 300 a month and only have 11 more payments left. Problem is I have to pay them 900 in september as my mom let me put off everything for a few months. This will show up on my bank statement, but I'm not reporting this to the courts or my attorney as I don't want my parents to find out I filed. Do they freak out more on the spending before filing or on what comes out during the discharge period? I have a bunch of stuff to pay between now and filing besides that also, medical bills and some of the debt under my wifes name.

Seriously I would be lost without all you guys and freaked out! This place has been awesome!

[keepmine]

I'd strongly suggest you tell your attorney everything. You're about to get yourself in a preference situation with repaying your parents. Any payment over $600 within 90 days of filing to an insider or unsecured creditor can be claimed by the trustee for the bk estate. The trustee has the authority to sue your parents for the money.

[BKParalegal]

Mark, You either need to be prepared to settle with the Trustee, wait 1 year to file, or let mom and dad know that they may or may not come for the money.

Good Luck